Bakers prefer butter, helping prices soar
Consumers around the world are willing to pay more for products containing dairy and this is driving demand for butter and cream, says Fonterra.
A programme launched last year to help dairy farmers cut energy costs, is open to more recruits.
Under the programme, qualifying dairy farmers get grants towards installing heat recovery systems in the milking shed. These systems cut electricity bills by around a third, by 'capturing' waste heat from refrigeration and re-using it to heat water used for washing down the dairy shed.
Run by the Energy Efficiency and Conservation Authority (EECA), the government agency that works to improve the energy efficiency of homes and businesses, the programme has attracted 18 farms. The programme plans to assist the installation of around 40 systems, so there is room for a further 22 recruits.
"Heat recovery from the milk refrigeration system is a great opportunity for dairy farmers to reduce electricity costs and improve productivity," says EECA business industrial programme manager Rod Treder.
"Heat recovery is one of the best ways for dairy farmers to improve their energy use, productivity and bottom line.
"Clearly the drought has been very tough for many dairy farmers. Installing new heat recovery equipment might not be top of mind, but the savings achieved through heat recovery build year-on-year, helping make farm businesses more resilient."
EECA BUSINESS research shows a wide variation in milking shed energy efficiency, with some operations using three times more electricity per cow than others. Heat recovery is usually the most cost-effective way to reduce energy costs.
On average, heat recovery saves farmers around $6,000 in electricity costs every year, with a payback of around 2 years. Generally, the larger the herd the shorter the payback period.
To take part in the Shed Heat Recovery programme, farmers should contact one of four contracted providers around the country.
Nationwide:
Climatemaster - www.climatemaster.co.nz
North Island:
Maverick Energy - www.maverickenergy.co.nz
South Island:
Dairycool - www.dairycool.co.nz
Waitaki Refrigeration - www.waitakirefrigeration.co.nz
For more information see www.eecabusiness.govt.nz/dairy-shed-heat-recovery
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